(RoyalPatriot.com )- With the cost of gas, rental apartments, and generally all products and services increasing thanks to President Joe Biden’s inflation crisis, now is a pretty terrible time for personal credit lines to become more difficult to obtain…but that’s precisely what appears to be happening.
Reports suggest that Wells Fargo Bank will stop providing personal lines of credit to consumers, with no new applications being accepted from now on and the accounts of those who already have personal credit lines being closed down.
In a statement, Wells Fargo revealed that the decision was made to “simplify” their product offerings and to meet the borrowing needs of their customers through personal loan products and credit cards. It means that customers will be able to get some credit offerings from the bank, but they will be more restrictive than they were previously.
The lines of credit dropped by the bank typically gave people access to lines of credit from $3,000 to as much as $100,000. Typically, people would use these lines of credit to pay for large purchases like home improvement, medical expenses, or for consolidating debt.
It’s not the first time that Wells Fargo has dropped credit offerings, either. In 2020, Wells Fargo ended home equity lines of credit and also stopped providing auto loans to nearly all independent car dealerships.
Fox News speculates that the decision could be a result of the bank struggling to make enough money after the Federal Reserve hit it with penalties over the fake accounts scandal that his millions of customers.
The good news for small lenders, however, is that there is a huge number of local credit unions and smaller banks still willing to provide these small loans.
If you already have a line of credit with Wells Fargo, you’ll have been given a 60-day warning of the account closures. The bank has said it will work with clients to find an alternative credit solution.
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